IMPORTANT BULLETIN Your Simplified Pension Plan no Improvement to McGill University Simplified Pension Plan

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1 GROUP SAVINGS AND RETIREMENT MARCH 2017 IMPORTANT BULLETIN Your Simplified Pension Plan no Improvement to McGill University Simplified Pension Plan Dear Member, In recent months, McGill University analysed the range of investment options available to you as part of your group retirement contract. In order to give you a simplified range of quality choices adapted to the everchanging financial markets and to help you reach your retirement goals, we are pleased to announce that changes have to be made to your Simplified Pension Plan. Some are already in effect to allow you to benefit from them immediately, and others will be made on March 31, What changes are already in effect? 1. Addition of new ATTITUDE Portfolios 2. Reduction in management fees What changes will be made on March 31, 2017? 3. New default investment option 4. Changes to investment lineup (removing and replacing funds) What do you have to do? You should review your investor profile to ensure your current investment allocation meets your objectives. If you have investments in any of the funds being removed and do not provide investment instructions, your investments will automatically be transferred into the corresponding replacement options. You can make changes if you wish (but it's not mandatory). To do so, go to the What should you do if... section. Take a look to the following sections to learn what your options are. 1. Addition of ATTITUDE Portfolios Your investment options have been enhanced with the addition of ATTITUDE lifecycle portfolios. They are designed to help you take full advantage of your investment strategy and enjoy peace of mind. An ATTITUDE Portfolio is a pre-built investment solution that helps you avoid having to analyze and monitor financial markets. The composition of the ATTITUDE Portfolios adjusts automatically every three months based on your target retirement date and your risk tolerance, which makes it easier to manage your investments. The further away from retirement you are, the greater the proportion of your savings invested in equities. Conversely, as you approach retirement, the greater the proportion of your savings is invested in bonds in order to reduce the effects of market fluctuations.

2 2. Reduction to your plan s investment management fees Good news! The pricing of McGill University Simplified Pension Plan has been improved. The average management fees applicable to investment funds have been reduced by at least 19% (investment fees applicable to each fund must been added to these new management fees). Your account in My Client Space reflects the new fees. 3. New default investment option On March 31, 2017, the default investment option will be changed to the Balanced ATTITUDE portfolio with a target retirement age of 65. The default investment option is applied when no investment instructions have been chosen for your account. If this is the case, the amounts invested under your plan in the previous default investment option (Money Market 070) will be automatically transferred to the new default investment option. 4. Changes to investment funds In order to simplify your fund offering, the following funds will be removed on March 31, The amounts invested in these funds will be automatically transferred to the corresponding receiving funds: Originating Funds Code Receiving funds Code Income funds Short Term Bond 170 Emerald Canadian Bond Index (TD) 489 Bond (Fiera Capital) 472 Bond (PH&N) 521 Core Plus Bond (PH&N) 632 Core Plus Bond (PIMCO) 860 Bond 020 ReturnPlus (AlphaFixe) 453 Long Term Bond 504 Core Plus Long Term Bond (PIMCO) 861 Global Fixed Income (PIMCO) 893 Canadian Equity Funds Canadian Equity Index (TD) 753 Dividend 160 Canadian Dividend (Beutel Goodman) 887 Canadian Equity Value (PH&N) 633 Canadian Equity Selexia (Fiera Capital) 473 Fidelity Canadian Systematic Equity 862 Canadian Equity Low Volatility (TD) 888 Canadian Equity All Cap (Triasima) 151 Canadian Equity Growth %: Canadian Equity (QV) 634 Canadian Equity Q Growth (CC&L) %: Fidelity Canadian Focused Equity 871 Canadian Equity (Jarislowsky) 488 Canadian Equity Growth (MFS) 360 Canadian Equity Value 010 Fidelity True North R 270 Canadian Equity Responsible (MFS) 514 Canadian Equity Small Cap (Montrusco) 511 Canadian Equity Small Cap (QV) 541

3 Originating Funds (continued) Code Receiving funds (continued) Code Foreign Equity Funds Global Equity Index ACWI (BlackRock) 876 Global Equity 707 Global Equity (C$-Hedged) (Hexavest) 865 Global Equity (QV) 534 Global Equity (Sprucegrove) 754 Global Equity (Templeton) 465 Global Equity (Aberdeen) %: Global Equity (Hexavest) 500 Global Research Equity (MFS) %: Global Equity (Mawer) 133 Fidelity Global Select Equity 863 Global Equity Low Volatility ACWI (TD) 886 Global Equity Endeavour (Invesco) 490 Global Equity Small Cap (Deutsche AWM) 531 Global Equity Small Cap (Mawer) 130 International Equity Index (BlackRock) 300 International Equity 706 International Equity (Sprucegrove) 755 International Equity (Templeton) 080 International Equity (Mawer) 131 International Equity (Aberdeen) 121 International Equity (Jarislowsky) 483 International Equity (MFS) 467 U.S. Dividend Growth 518 U.S. Equity 705 U.S. Equity (Jarislowsky) 512 U.S. Equity (Mawer) 132 U.S. Equity Index (BlackRock) 760 U.S. Equity Core (MFS) 513 U.S. Equity (Fiera Capital) 479 Alternative / Specialty Funds Balanced-Risk Allocation (Invesco) %: Global Equity (Hexavest) 500 Fidelity Global Real Estate %: Global Equity (Mawer) 133 If you do not have amounts invested in the originating funds, you have no immediate action to take because the changes will have no impact on your investments. However, you should review your investor profile questionnaire to ensure your current investment allocation continues to meet your objectives. What should you do if......you want to change your investment instructions? If you have amounts invested in the originating funds, you can, if you wish, choose investment options that are different from the ones suggested. Before choosing your investment options, we advise you to assess your level of tolerance to financial risk. Complete the Your investor profile questionnaire on My Client Space to help you choose investment options that respond to your investor profile.

4 Thereafter, to change your investments or your investment instructions, you may do so in one of two simple ways: ONLINE Go to ia.ca/myaccount Access your group savings and retirement plan, click on Investments, then Change BY PHONE Customer Service (Monday to Friday, 8:00 am to 8:00 pm)...you want to know more? To learn more about the ATTITUDE Portfolios and the range of investment options offered in your plan, go to the Investment Solutions section of the Group Savings and Retirement page on ia.ca, or better yet, consult your group savings and retirement contract in My Client Space at ia.ca/myaccount. To obtain more information or if you have questions about access to My Client Space, contact an agent of our Customer Service. Monday to Friday, 8:00 am to 8:00 pm (Eastern time). Phone: Sincerely, ia Financial Group Group Savings and Retirement

5 GROUP SAVINGS AND RETIREMENT McGill University Simplified Pension Plan no New range of investment option Investment options Code ATTITUDE Portfolios All profiles - Asset Allocation Funds Asset Allocation Conservative 506 Asset Allocation Moderate 507 Asset Allocation Balanced 508 Asset Allocation Growth 509 Asset Allocation Aggressive Growth 510 Income Funds Money Market 070 Bond 020 Diversified Funds Diversified Security 240 Balanced Moderate Index (BlackRock) 889 Diversified 040 Balanced (Jarislowsky) 463 Balanced (PH&N) 522 Diversified Opportunity 250 Canadian Equity Funds Canadian Equity (QV) 634 Fidelity Canadian Focused Equity 871 Foreign Equity Funds Global Equity (Hexavest) 500 Global Equity (Mawer) 133 International Equity (Hexavest) 852 International Equity (Mawer) 131 U.S. Equity Index (BlackRock) 760 Guaranteed investments All terms - ia Financial Group is a business name and a trademark of Industrial Alliance Insurance and Financial Services Inc.